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The equity accounts of Headland SE on January 1, 2017, were as follows. Share CapitalPreference (9%, 50 par, cumulative, 10,300 shares authorized) 385,000 Share CapitalOrdinary
The equity accounts of Headland SE on January 1, 2017, were as follows.
Share CapitalPreference (9%, 50 par, cumulative, 10,300 shares authorized) | 385,000 | |
Share CapitalOrdinary (1 stated value, 1,923,100 shares authorized) | 1,330,100 | |
Share PremiumPreference | 148,900 | |
Share PremiumOrdinary | 1,493,600 | |
Retained Earnings | 1,844,800 | |
Treasury SharesOrdinary (20,400 shares) | 46,920 |
During 2017, the corporation had the following transactions and events pertaining to its equity.
Feb. 1 | Issued 25,300 ordinary shares for 75,900. | |
Apr. 14 | Sold 8,500 treasury sharesordinary for 46,400. | |
Sept. 3 | Issued 7,100 ordinary shares for a patent valued at 41,400. | |
Nov. 10 | Purchased 1,000 ordinary shares for the treasury at a cost of 5,700. | |
Dec. 31 | Determined that net income for the year was 460,500. |
No dividends were declared during the year.
I ONLY NEED THE RED PARTS
Journalize the transactions and the closing entry for net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Feb. 1 v Cash 75900 Share Capital-Ordinary 25300 Share Premium-Ordinai 50600 Apr. 14 v Cash 464001 Treasury Shares 21250 Share Premium-Treasur 25150 Sept. 3 v Patents 41400 Share Capital-Ordinary 7100 Share Premium-Ordinai 34300 Nov. 10 v Treasury Shares 5700 Cash 5700 Dec. 31 Income Summary 460500 Retained Earnings 460500 Enter the beginning balances in the accounts, and post the journal entries to the equity accounts. (Use 35 for the posting reference.) (Post entries in the order of journal entries presented in the previous part.) Share Capital-Preference Date Explanation Ref Debit Credit Balance 385000 Jan. 1 Balance Share Capital-Ordinary Date Explanation Ref Debit Credit Balance Jan. 1 Balance 1330100 15 Feb. 1 25300 1355400 7100 1362500 Sept. 3 v J5 Share Premium-Preference Date Explanation Ref Debit Credit Balance Jan. 1 Balance 148900 Share Premium-Ordinary Date Explanation Ref Debit Credit Balance Jan. 1 Balance 1493600 15 Feb. 1 50600 1544200 J5 Sept. 3 34300 1578500 Debit Credit Balance Share Premium-Treasury Date Explanation Ref J5 Apr. 14 v Retained Earnings Date Explanation Ref 25150 25150 Debit Credit Balance 1844800 Jan. 1 Balance | Dec. 31 15 Treasury Shares Date Explanation Ref 460500 2305300 Debit Credit Balance Jan. 1 Balance 46920 Apr. 14 v 15 21250 25670 Nov. 10 v 15 5700 31370 Prepare an equity section at December 31, 2017. HEADLAND SE Statement of Financial Position (Partial) December 31, 2017 X Paid-in Capital Share Capital-Preferenc 385000 Share Capital-Ordinary 1362500 Share Premium-Prefere 1489001 Share Premium-Ordinai 1578500 X Share Premium-Treasur 25150 Retained Earnings 2305300 X Less Treasury Shares 31370 Total Equity 5773980Step by Step Solution
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